Key insights
- The article discusses NU Holdings as a potentially cheaper and more profitable alternative to a hypothetical Revolut IPO. NU Holdings operates in LATAM and plans a US market entry in 2027. While its profitability is concentrated in Brazil, its expansion into Mexico and upcoming US presence are key growth drivers. The author views NU Holdings favorably for long-term investment, suggesting a potential positive impact on the fintech sector and related US equities as it gains traction.
I know, this year the IPO around the corner is SpaceX and lots of companies have benefit from the hype around, what will happen after? Don't know, don't care.
Now, to the point. While I am a Europoor who uses Revolut mostly for vacation cause unlike USA Citizens we can easily travel to multiple countries near by that uses a different currency, I am really looking forward for Revolut IPO.
Unfortunately, the IPO has been delayed, as CEO wants the company to be fully released globally before going public, this I guess is a good long term move and it will bring additional investors and the company will be more known.
And so, it kept me thinking... what kind of Neobank can I invest on that is relatively cheap compared to others, in good health and with a 2-3 years hold vision?
So I did a little research, mostly using Gpt and Grok cause, why not, Is free and is there.
I came across a company called NU Holdings which essentially is a Revolut, except it operates in LATAM. Specially Brasil, Colombia and recently added Mexico. The company aims to enter USA market soon.
Looking at their numbers, NU Holdings is a winner. The Revolut valuation is of course theoretically but we all know the hype around these things.
Now, there are some risks as well. Most of Nu Holdings profit comes from Brasil, and investors punish companies that operates in certain regions or countries due to market uncertanty and other political events. Mexico still needs to grow and the USA expansion will be key to gain popularity and growth this is why they already obtained a conditional approval early this year and are expecting to enter the market in 2027. Not that far away.
Here is how NU Holdings make money, I add this chart just because it looks so cool.
If comparing to Revolut current valuation, NU is heavily undervalued, this company should be trading at least at 25$. and if we go bull case with Revolut IPO going bananas it could reach 50$, I am not saying this shit is going to make you a gazilion of money, just that current price is very undervalued for a company that in essence, does better than others in same sector and are valued at higher price.
And last, this is not financial adivice, I wrote it by hand all by myself so excuse my english as I am not native speaker.
Positions: 1500 shares at 11.86$ and 500 shares at 13$